TRUIST FINANCIAL CORP Quarterly Report for Q3 Ended Sep 30, 2024

Summary

Truist Financial Corporation (TFC) reported a solid third quarter of 2024, demonstrating sequential improvements in profitability and capital management. Net income available to common shareholders increased by 25% year-over-year to $1.3 billion, or $0.99 per diluted share, reflecting an improved net interest margin and strong noninterest income growth. The company successfully executed a balance sheet repositioning following the sale of its insurance holdings (TIH), which, while resulting in a significant after-tax loss in the prior quarter, has contributed to higher yields on its reinvested securities. Asset quality remained stable, with nonperforming loans as a percentage of total loans HFI at 0.48%. The provision for credit losses decreased year-over-year, indicating a more stable credit environment, though net charge-offs saw a slight increase driven by consumer portfolios. Truist also maintained strong capital ratios, with a CET1 ratio of 11.6%, and continued its capital return strategy through dividends and share repurchases. The company announced a redemption of its Series L Preferred Stock, further optimizing its capital structure.

Key Highlights

• 1Net income available to common shareholders increased 25% year-over-year to $1.3 billion.
• 2Diluted EPS of $0.99 increased $0.19 year-over-year.
• 3Net interest margin improved to 3.12%, up 20 basis points, driven by balance sheet repositioning and higher market rates.
• 4Noninterest income increased 11% year-over-year, primarily due to higher investment banking and trading income.
• 5Noninterest expense decreased 4.3% year-over-year, aided by expense discipline and lower restructuring charges.
• 6Common Equity Tier 1 (CET1) ratio remained strong at 11.6%.
• 7The company returned $1.2 billion to shareholders via dividends and $500 million via share repurchases in Q3 2024.

Frequently Asked Questions